Taking a look at the 10-year note, we are currently trading 137.22, up 2 ticks on the day. Overnight we had a high of 138-19 and a low of 137-07. The market continues to take cues from any new developments on the coronavirus and the stock market. On Monday we touched the lowest level in the 10-year based on yield, and the highest price in the futures on record as the stock market tumbled. I believe we all recognize that coronavirus is a pandemic and about fifteen minutes ago the WHO just declared it as such.  What is interesting for traders is that the 10-year note is currently down 2 ticks and Gold down $12, all while the Dow is down 1100 points. It’s a bit confusing why the notes are lower and not catching a bid while the stock market is down big today. My advice to traders looking at the note complex is continue to be a buyer on dips.  It doesn’t look like the virus is slowing down at all. Italy is basically shut down and many universities and colleges in the states are sending students home and will be telecommuting for the near future. The panic of this virus remains and if people are not getting tested as the government suggests, the possibility of continued spread among individuals seems high.

10-Year Note Jun ’20 Daily Chart
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Greg Perlin

Senior Market Strategist

Greg is a former Chicago Board of Trade member. He was an independent floor trader, pit broker and floor broker with Cantor Fitzgerald. Some of his clients included traders from Morgan Stanley and Lehman Brothers. He also acted in the capacity of desk manager for the morning trade desk. Greg was part of the elite Lind Plus Division for 10 years before joining RJO Futures in 2011.

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